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{
    "id": 1216071,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1216071/?format=api",
    "text_counter": 228,
    "type": "speech",
    "speaker_name": "Sen. Ali Roba",
    "speaker_title": "",
    "speaker": null,
    "content": "Thank you, Madam Temporary Speaker and hon. Members for your contribution to the Debt Management Strategy that is being discussed today. This Committee has gone through a number of issues. Some of the issues that have come to light that will make the situation worse is the prevailing drought situation affecting 23 of the 47 counties. It has wiped out the larger proportion of livestock wealth which is the mainstay of the economy of the Arid and Semi-Arid Lands(ASAL) counties. This is going to affect the country’s performance further in terms of what is happening. These communities have largely been dependent on their livestock for their livelihood. Now, they are dependent on the Government to sustain themselves in terms of feeding and other issues now that their livestock wealth has been wiped out. The issues of debt management require a critical balance. Already, the debt ceiling of Kshs10 trillion, the Government has reached Kshs9.4 trillion leaving only borrowing space of about Kshs600 billion. In the BPS, they have proposed to borrow about Kshs720 billion when the debt ceiling allows the Government to borrow only Kshs600 billion. This requires serious balancing. Of critical importance in the balance is the ratio of external borrowing to domestic borrowing. External borrowing has not done well in the last bond that was circulated externally. However, domestic treasury bonds are doing extremely well. What is going to happen should the Government decide to over-borrow from the local market? It means crowding out will happen and local business will not access financing from the local banks. Naturally, banks prefer Government Treasury bonds to lending to individual borrowers, which will affect the market highly. The issues of inflation control are critical in this country. Looking at the drought situation, I do not see an optimistic picture ahead. The issue of the stability of our currency because we are dependent on import, our balance of trade is more import than export as it stands. If that is the case, our foreign reserve need to be improved to ensure that the shilling remain stable against all foreign currencies. The situation right now is not encouraging because the shilling, at the local market, stands at Kshs135 to the dollar which is extremely worrying. We have processed this document. As I beg to reply to the Motion, I would like to request, in line with Standing Order No. 66(3) for the hon. Speaker to defer the putting of the question to a later date."
}